CEED Tech, a consortium of Central and Eastern European technology accelerators, has raised €5 million from the European Commission as a part of the latter’s Seventh Framework Programme (2007-2013). The funds will be given to startups that are to be selected via the application process launched today. CEED says they will prioritize early stage software startups.
CEED Tech is a consortium of established software accelerators with funds co-financed by private angels and venture investors. The investment by CEED Tech are made in return for 5% to 15% of equity stake in the startup.
“The combined resources and extra funding will spark and enable innovation throughout the region,” said Calum Cameron, Managing Director at Startup Wise Guys, one of 5 accelerators located in Estonia, Lithuania, Slovakia, The Czech Republic and Hungary. “This EC grant will allow CEED Tech to distribute much more money to startups in the region, at a much smaller cost of equity from those startups, while increasing our pool of applicants, and helping startups find the right fit in an accelerator.”
Startups that are accepted into one of the five programs will receive up to €30K in immediate seed capital, and will undergo 3 to 6 months of “acceleration”.
CEED Tech members are StartupYard in Prague, Digital Factory in Budapest, The Spot in Bratislava, Startup Wise Guys in Tallinn, and Open Coffee Club Vilnius. Their combined portfolio is comprised of nearly 100 companies.